Comparison Of Air China And American Airline

A Case Study- Air China Name: Course: Instructor: Date: Part 1: Airline China Description Air China is one of the major airlines in China. Headquartered in Beijing, Air China is the leading service providers of air cargo, passengers, air products, and other related services in the republic. The airline as well provides other related services such as ground handling services, aircraft maintenance at its headquarters and other locations. 6.26 years being the average age, the fleet operated by the Group was 603 aircraft by the year 2016 (Star Alliance, 2016). The company's operation was 366 aircraft within 6.41years as the average age. The routes for passenger traffic were 377; 263 domestic, 16 regional and 98 international. The company operated in a network that covered 173 cities; 61 international, 108 regional and 4 regional (Star Alliance, 2016). Part 2: Comparison of Air China and American Airline Air China has got numerous strengths that not only help it to survive in the market but also access new markets. The airline is known for its product innovation. Activities’ automation has helped the company to scale on both sides to meet the demand in the market. Air China is known for performing well in new markets. It has got a Brand Portfolio that stands out to be very strong. The dealer community that the company operates in helps in both promoting the product as well as investing in the company. The company has got a very strong distribution network that aids it to penetrate the major potential markets (Ahmed & Almari, 2007, p. 2). New project execution and building of new streams of revenue have enabled the company to get superb returns from the expenditure of the capital. The American line is one of the major airlines in the United States and thus serves as the best airline to compare with Air China. Using its strengths for comparison, the company has got a loyalty Flyer Program, which has resulted in building very strong brand loyalty among its users (Bhasin, 2018). The company has got strong alliances and ties both regionally and internationally. This helps to increase the frequencies of the flights of the airline. The on-board entertainment reputation has led to the company tapping new customers and an increase in the brand loyalty. It has got an extensive operational network and the major market shares in the US. Weaknesses of the Air China are the areas where the company can improve on to perform better. Some of the weaknesses are stated as follows. The company fails to forecast the product demand. This leads to it losing a lot of lucrative opportunities. The company is below standards in new technology, thus requiring more investment in this area. When compared to the fastest growing industry players, the Air China’s investments in development and research is way too low (Ahmed & Almari, 2007, p. 2). The company has lost a number of small markets due to its failure to handle the new entrants in the market. Merging firms that pose different culture has been a hurdle for this company. There is a lack of choice when it comes to products, thus leaving any gaps that other competitor can seize. In the case of the American Airlines, its weakness lies in the number of suppliers that are limited, pension benefits that are unfunded and the increasing number of the Low-Cost Carriers Competitors (Bhasin, 2018). Looking at the two companies, Air China seems to have numerous weaknesses than the American Airlines. These weaknesses can easily and steadily be handled to benefit the company. For instance, if the company emulates the American Airline on forming Alliances, both regionally and internationally it can easily step into the potential market without much...